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Payment Protection Plus® - Summary of Protections

The Payment Protection Plus (“Program”) is an optional benefit to Your Applied Bank Account. Whether or not you purchase the Program will not affect your application for credit or the terms of any existing Credit Card Agreement you have with Applied Bank. Upon acceptance of your enrollment in the Program, you will receive the complete Program Agreement (“Agreement”). Please read the Agreement carefully since it provides a complete explanation of the Program. The following is only a summary of the Program, including a summary of the eligibility requirements, conditions and exclusions that could prevent you from receiving benefits under the Program. The Program will make the minimum monthly payments for the enrolled account during the Benefit Period for the following Covered Events with respect to the primary cardholder: Involuntary Unemployment, Disability, Leave of Absence, Life Events, and Hospitalization. The Program will provide debt cancellation of the outstanding account balance in the event of Loss of Life with respect to the primary cardholder.

COST: The monthly fee for the Program is 95 cents per $100 of the monthly outstanding account balance.

Benefit Benefit Period
Disability Up to 12 months per occurrence
Involuntary Unemployment Up to 12 months per occurrence
Leave of Absence Up to 12 months per occurrence
Hospitalization 1 month
Natural Disaster 1 month
Divorce 1 month
Birth or adoption of child 1 month
Change of primary residence 1 month
Loss of Life Benefit payment made on account canceling out account balance on the credit card statement issued immediately following date of death

PROTECTIONS FOR YOU: You must be enrolled in the Program for a minimum of 30 consecutive days at the time of a Covered Event.

INVOLUNTARY UNEMPLOYMENT: You must be unemployed for 30 consecutive days as a result of an involuntary and complete loss of Full-Time Employment. You must be and have been employed on a full-time basis for a minimum of 90 days at the time of the unemployment and qualify for state unemployment benefits or register with a recognized employment agency. Your unemployment must not be the result of: (a) Your voluntary forfeiture of employment salary, wages or other employment income; (b) Your resignation; (c) Your retirement; (d) Your termination of employment as the result of willful or criminal misconduct; (e) scheduled termination of an employment contract; (f) seasonal employment; (g) loss of income caused by illness, disease, accident, injury or pregnancy; (h) Your imprisonment; (i) declared war; (j) reduction in number of hours worked that does not result in total elimination of employment income. You are not eligible: if You are self-employed or an independent contractor; if You had notice either orally or in writing of pending unemployment within 90 days prior to the Program Effective Date; for any month You are receiving or eligible to receive disability benefits from any source; or if Your date of unemployment is prior to the Program Effective Date.

DISABILITY: You must be totally disabled due to a sickness or injury for 30 consecutive days and such Disability must cause a complete loss of Full-Time Employment or if not gainfully employed, You are unable to perform all normal daily activities. You must be under the continuous care of a Physician who will verify your Disability in writing. Your Disability must not be the result of (a) a normal pregnancy or childbirth; (b) an intentionally self-inflicted injury whether sane or insane; or (c) the date of Your Disability began prior to the Program Effective Date.

LEAVE OF ABSENCE: You must be on an unpaid employer approved temporary absence from permanent, non-seasonal, Full-Time Employment for 30 consecutive days due to the birth or adoption of a child, care for a sick family member or recall to active military status. Your Leave of Absence must not be the result of (a) Your resignation; (b) Your retirement; (c) scheduled termination of an employment contract; (d) termination of employment; (e) absence from work due to illness, disease, accident or injury; or (f) self-employment or an independent contractor.

LIFE EVENT: Life Event means (a) divorce; (b) birth or adoption of a child; (c) change in primary residence; or (d) natural disaster. Your Life Event does not include foster care, guardianship or custodial arrangements; separation or annulment; or receipt of a benefit for the same Life Event occurrence date.

HOSPITALIZATION: You are hospitalized overnight for 1 or more consecutive nights.

LOSS OF LIFE: You lose your life.

ENDING YOUR PROTECTION: You may terminate your enrollment in the Program at any time. If you decide to terminate within 30 days of the Program Effective Date, Your Account will be credited for any Program fee which has been charged to Your Account. We may terminate this Program with 30 days advanced notice to You. Your enrollment in the Program will terminate with no advanced notice to You if: (a) We grant a debt cancellation for Loss of Life; (b) You participate in a debt management program or any workout programs offered by Us; (c) You are 90 days (3 billing cycles) past due in making Your monthly payment; or (d) You file for bankruptcy. This Program will be reinstated once You are no longer participating in a debt management program or workout program or You are no longer past due in making Your minimum payment.

ADDITIONAL IMPORTANT DISCLOSURES:

  • You must continue to make at least Your minimum payment on Your Account until You are notified by Us that You have been granted a Benefit.
  • A Benefit Payment may be taxable as income. You should contact a qualified tax advisor concerning the tax impact, if any.
  • Any arbitration provisions that may apply with respect to Your Credit Card Agreement shall also apply with respect to this Program.
  • We may assign any of Our rights or obligations under this Program without prior notice to You. You may not assign any of Your rights or obligations under this Program.
  • The Program is not insurance.